Wednesday, March 22, 2017

My AliBaba story

I have been thinking of my AliBaba story since a lot of people are trying to figure out where to put their money - you see Jack Ma is in town and this is the time to really make a killing. He in fact already has a company which he controls and in case you want to take the opportunity of buying his holdings, can approach Lazada for a private sale.

Anyway, as I have been thinking, I realised I have almost all the plans and investments lined up except for filling in one or two gaps that are still there. You see many years ago, I already knew that e-commerce was going to be big in Malaysia and this region. With e-commerce, there will be distribution, transportation and lastly finance.

WCE

When the government approved the alignment for the new highway for West Coast Expressway (formerly Keuro), I knew that it was going to be a major highway to connect the main ports. Alibaba is about logistics and connectivity. WCE is connecting Port Klang to KLIA. It is also the faster route from Port Klang to Lumut and to Penang Port. WCE's management has already mentioned of WCE potentially being a port to port connecting highway and since it is a much flatter route, it is very friendly towards trucks and heavy vehicles.

Now, I have already road, what about air?

Airasia

Can you see, Airasia? Long, long time ago before Jack Ma stepped foot onto Malaysia or even knew Malaysia existed (I believe that as Jack Ma has always claimed that he was never a clever person anyway, hence his direction and geography is pretty bad), Tony Fernandez already knew of AliBaba. Hence, he created a direct route from KLIA to Hangzhou, where AliBaba's head office is.

MAS never had that route. So, you can see that Tony really had that foresight. Now, today with Jack Ma coming to Malaysia in a big way, it is going to be really positive for Airasia. There will be a lot of people connecting between Hangzhou and KL, not needing to go through Shanghai which is another 1 hour away.

For AliBaba's staffs, speed is important. Airasia is now transporting people as well as goods (cargo). Hence, the connectivity between Hangzhou and KL is really getting important. I am really glad that the company I invested in has that foresight.

DKSH

Even before Airasia and WCE, I have put my money into DKSH. As everyone know, DKSH is a logistic company. It in fact is one of the largest distributor in Malaysia. Malaysia is building itself into a distribution hub. Through that, DKSH will be in a good position.

Maybe, AliBaba will want to acquire DKSH? (Purely, speculative) You see, in acquiring DKSH, the Swiss parent, it will be able to acquire a substantial operation for South East Asia region.

Now, since I have road, air and distribution figured out, I am looking for sea (anyone can help here?)

Tropicana and Ecoworld
Everyone knows now that Alibaba is a Top 10 market company globally. It has hence created a lot of millionaires and billionaires. Its employees are definitely doing very well. When they come to Malaysia, they would want to buy nice big homes which are nearer to KLIA - the distribution hub proposed. Ecoworld's EcoMajestic and Tropicana Aman is just 20 km away and they produced the most beautiful homes and "taman" in South Klang Valley. Surely, the employees from Alibaba will be buying or at least renting these homes.

Insas

You see, the largest holding for Insas is a company called Inari. Inari is building semiconductor chips and Alibaba being a technology based company can make use of Inari chips? I am sure there are some relevancy here as Inari produces for Broadcom and Broadcom is very big in data center chip solutions. Alibaba going big into Aliyun (data center cloud services - much like Amazon Web Services) will definitely be beneficial for Inari, hence Insas.What about me? The poor TA

As you can see, Alibaba is also going big into consumer credit (micro) businesses - through AliPay. Jack Ma knows that he cannot buy a bank as it is not possible regulations wise. He hence looks out for companies that provide transaction services. In Malaysia, some of these companies holds credit lending license - and TA is one of them. TA is in fact ideal as it has the strong credit standing, reach and perhaps the owners are now more keen on doing properties than credit and stockbroking. Hence, Jack! if you want to buy a credit licence, perhaps can consult me? Hey...

Ekovest leh?

Simple. Ekovest is linked to IWCITY. IWCITY is linked to Bandar Malaysia. And Bandar Malaysia is linked to HSR rail and KLIA as well. See...

I hope my story is much more bombastic yet believable than many out there including here, here, and another one from DNEX.

Note: Most of the stories are fake and please do not bring to SC and say that I have been convincing you to buy these stocks. You see, I do not do "pump and dump", because generally I am too dumb not to dump.However, it is true to my believe that transportation, logistics are key to the growth of e-commerce in the region which is the main gist of my holdings.

Sea...you need ship and port handling...so MISC and MMCCorp and Westport too. Although you have DKSH for logistic but DKSH not direct to the consumer itself...they're distributor to shopping centres and so on. Direct delivery to consumer will be GDex, Citylink, POS and TNlogis also moving into this area. Then you forget about packaging...you need packaging materials such as boxpax, NTPM Ornapaper and some other packaging companies as well.

I think what people do not realise for POS is that what it used to enjoy as Monopoly, today it is not anymore. Most of the postal service has had to change. POS today has not much competitive advantage against the GDEX for example. Top up with its poor culture, it will lose if not careful. In any business, there are just a few good players and I do not see POS as being the leader.does anyone know that Lazada itself has its own courier company, LEX? It has been one of Jack Ma's strategy.

Disclaimer

The content here should serve as the opinion of the writer rather than as an advice to buy or sell. You should do your own research and/or seek expert's advice when doing your investments. Any decision that you made is your own and the author should not be held accountable.